WHEREAS, on 27 July 2016, the Board issued Memorandum Circular No. 02-2016 to regulate the broadcast of program contents in the medium of digital terrestrial television (DTT);

WHEREAS, on 27 July 2017, the Board amended certain provisions of Memorandum Circular No. 02-2016 extending the period of registration of DTT operators and further rationalizing the rate of review and monitoring fees of program contents shown on DTT channels;

WHEREAS, on 25 October 2017, the Board, through Memorandum Circular No. 05-2017, deferred the implementation of Memorandum Circular No. 02-2016, as amended by Memorandum Circular No. 02-2017, upon the representations of the Department of Information and Communications Technology (DICT) and the Kapisanan ng mga Brodkaster ng Pilipinas (KBP), as well as of other DTT operators, for the Board to revisit the review rates governing DTT broadcast;

WHEREAS, on 18 October 2017, the Board held another round of public consultation concerning Memorandum Circular No. 02-2016, especially on the review fees of programs shown on DTT channels;

WHEREAS, the Board is well aware that pending the government-mandated analog switch off (ASO) on 31 December 2023, television stations are doing parallel broadcast of their programs in analog signal and in digital signal;

WHEREAS, the Board cannot shirk from its responsibility to ensure that programs  shown  on  televisions,  whether  in  analog  channels  or  in  digital channels, must be compliant with the provisions of Presidential Decree No. 1986;
 
NOW, THEREFORE, pursuant to the Board ™s power to inspect all public exhibition of motion pictures and television programs, and in the light of its authority to exercise such powers and functions as may be necessary or incidental to the fulfillment of its mandate under Section 3 of P.D. No. 1986, the Board hereby further amends Memorandum Circular No. 02-2016, especially Sections 8 and 9 of Chapter IV thereof, to read as follows:

1.    Section 8,  Chapter IV,  of  Memorandum Circular No.  02-2016 is  hereby further amended to read, as follows:

œSection 8. SUBMISSION FOR REVIEW AND CLASSIFICATION. - Starting  01  May  2018,  all  laws,  rules  and  regulations,  memorandum circulars and other directives issued by the Board in regard to the requirement of securing a Permit to Exhibit from the Board before any and all material is aired over free TV, which now includes DTTB, shall be in full force and effect. No material intended for DTT broadcast, except those specifically exempted by law under P.D. No. 1986 and its Implementing Rules and Regulations, may be aired without a valid Permit to Exhibit previously issued by the Board. All materials to be aired on DTT channels beginning 01 May 2018 must have the required permit to exhibit.

Applications for Permit to Exhibit for content to be simulcast between an analog channel and a DTT channel shall be filed at the instance of the analog channel and charged according to the rates of analog channels, with the DTT channel being a mere beneficiary of the single-filing policy provided for in Section 3, Chapter 3 hereof. 

2.    Section 9,  Chapter IV,  of  Memorandum Circular No.  02-2016 is  hereby further amended to read, as follows:

œSection 9. RATE OF REVIEW AND MONITORING FEES - As a way to assist the DTTB industry in the initial stage of its operations while at the same time protecting the general public from inappropriate materials shown on DTT channels, the Board shall impose a reduced review and monitoring fee for materials to be aired over DTTB.  Beginning upon the effectivity of this  Circular,  a  review  and  monitoring  fee  equivalent  to  five  (5%) percent of the applicable fees listed in Memorandum Circular No. 12-2013 (Schedule of MTRCB Review and Classification Fees and Charges) shall be assessed for every program shown on DTT channels.

3.    The Board shall reassess the propriety of the above-prescribed review rate on a yearly basis until the DTTB rate equals the prevailing rate for free TV broadcast. Until otherwise amended by the Board, the review rate herein prescribed  shall  automatically  be   the   prescribed  review  rate  in   the succeeding year.

4.    Upon the  effectivity of  this Circular and  until otherwise provided by  the Board, every DTT channel shall be assessed an annual registration fee in an amount  equal  to  that  as  prescribed  for  œOther  Regulated  Entities,   per Section (c)(4) of the Schedule of MTRCB Fees and Charges under Memorandum Circular No. 12-2013. Any registration of DTT channel beyond 01 May 2018 shall be assessed with appropriate surcharges and penalties. The registration regulations, as well as the prescribed annual registration fee, for television stations with Provisional Authority or Certificate of Authority from the National Telecommunications Commission shall continue to be the same, as provided for under Memorandum Circular No. 12-2013.

5.    All other provisions of Memorandum Circular No. 02-2016 and Memorandum Circular No. 02-2017, as well as all other issuances of the Board, that are not inconsistent with this Circular shall continue to be in full force and effect.

6.    This Circular shall take effect on 01 May 2018 following its publication in a newspaper of general circulation and filing with the Office of the National Administrative Register in the University of the Philippines Law Center, as required under the Administrative Code of 1987.

APPROVED, by the Movie and Television Review and Classification Board at its regular monthly Board Meeting on 21 March 2018.